Employers have been pulling back on their investments in employee experience, which could have a negative impact on both employee satisfaction and company performance. According to Forrester’s “Predictions 2024: The Future of Work” report, employee experience will be taking a back seat in 2024, leading to what they call an “EX winter.”
However, this reduced interest in employee experience could result in cutting costs or corners, affecting engagement, productivity, and ultimately growth. For example, Forrester found that the number of employers funding an internal DEI function dropped from one third to 27% from 2022 to 2023, with further declines predicted for 2024. As a result, companies may prioritize meeting DEI goals without truly funding initiatives that make a difference to employees.
One reason for this shift is the changing labor market, where employers are not as desperate to retain talent as they were during the Great Resignation. Consequently, the investment in employee experience may not be utilized effectively, with a focus on making HR functions efficient rather than improving EX outcomes.
An EX winter will continue to freeze out employees
According to Forrester, employee engagement has been on the decline, with further decreases predicted for 2024. This decline in engagement is detrimental to productivity, creativity, and motivation in the workplace, ultimately impacting the overall performance of the company.
Zig where others zag
Despite these challenges, Forrester suggests that companies can avoid the EX winter by investing in genuinely engaging with employees and measuring the impact of those investments. The key is to focus on both investing in employee experience and understanding how those investments truly impact employees and organizational success.
